HD Construction Equipment has established a production base for very large power generation engines in Gunsan to respond to growing electricity demand from artificial intelligence (AI) data centers.
HD Construction Equipment said it held a completion ceremony for its new engine plant at its Gunsan campus in the Gunsan National Industrial Complex, North Jeolla Province, on October 28. The plant was built over approximately two years on a site of about 62,700 square meters with an investment of 116.8 billion won.
The new plant can produce 1,250 very large power generation engines and 120 military engines for tanks annually. Annual battery pack production capacity is up to 1,460 MWh, enough to supply approximately 9,400 electric buses, according to the company's estimate.
Assembly robots and autonomous mobile robots have been introduced at the production facilities. Equipment for detecting quality defects in advance and an integrated control tower have also been installed to improve production efficiency and quality.
A key target market is high-output generators for AI data centers. HD Construction Equipment plans to begin mass production of a 37-liter engine with a power generation output of 1.3 MW in the first half of 2027. It will then broaden its product range by producing a 77-liter, 3 MW model in 2028 and a 50-liter, 2 MW model in 2029.
The company will also respond to medium- and long-term growth in demand for tank engines. It plans to expand battery pack supplies for commercial vehicles, construction machinery and industrial equipment.
Related articles
At the event, the company unveiled its 37-liter DX37 power generation engine for the first time. It renamed its Engine Business Division the Power Solutions Business Division and announced the slogan “Powering the Next.” The aim is to expand its business areas based on engines and battery packs.
HD Construction Equipment has set a target of achieving engine business revenue of 2.5 trillion won in 2030, using the new Gunsan plant as a foundation. That is nearly twice its 2025 revenue of 1.3 trillion won.
Original Korean article: ZDNet Korea
English brief by Korea Wind Intelligence, koreawindintel.com
